Entrepreneurship is very important for the economic and general social development of each country. Therefore, Croatia has also accepted that entrepreneurship is key to accelerated economic growth, with the SME sector playing a key role in the growth and development of the economy with a view to competitiveness on the markets of the countries of the region and the European Union. The aim of this paper is to explore and present the preconditions for the development of entrepreneurship in the Republic of Croatia and be recognized in the economic, political, legal and cultural environment. The work methodology relies on secondary data or published GEM research for Croatia in 2016. Research results enable Croatia to intervene in different aspects of entrepreneurial capacity.